AGRICULTURE DOES NOT EAT EU MONEY

 

 

Dear participants and guests of the Conference,

 

Welcome to the Seimas of the Republic of Lithuania, to the international conference to discuss agricultural policy after 2013. I am particularly pleased to see here our esteemed guest from the European Parliament, the Chairman of the Committee on Agriculture and Rural Development, Mr Neil PARISH, as well as the Director of COPA-COGECA, Ms Shelby MATTHEWS, and the representative of the European Commission Directorate-General for Agriculture and Rural development, Ms Christiane CANENBLAY.

 

The modern world changes at an unprecedented pace. Globalisation changes views on agriculture. Change has affected consumer expectations too. An agricultural policy is gaining importance against this background. The financial period up to 2013 has been specified. Farmers, however, want to see a more distant perspective, the period after 2013 because they have to plan their investment and need to know what is in store for them in the future.

 

The Common Agricultural Policy is as old as the European Union is – its 50 years old. Lithuania today, having acceded to the European Union in 2004, on the one hand, implements the CAP and is eligible for its sizeable support, and on the other, is a fully-fledged contributor to the Common Agricultural Policy reforms. The CAP is very important to us because of the considerable “weight” of agriculture in Lithuania’s social and economic life - 13 per cent of the total labour force are employed in agriculture and they “earn” about 14 per cent of Lithuania’s export revenues.

 

The Parliament of Lithuania watches closely the processes in Lithuanian rural areas. The situation has changed, thus a new version of the Law on Agriculture and Rural Development. It will be deliberated and, I hope, adopted shortly, which proves that we believe agriculture has a future in Lithuania.

 

The European Union finds the Common Agricultural Policy important too, with its rural areas making up about 90 per cent of its total area and over 50 per cent of its total population; rural areas generate 45 per cent of the gross value added. The figures speak for themselves. And for those reasons allegations that EU agriculture eats money are not incorrect. By the way, European agriculture that used to “eat” about 70 per cent of the EU budget several decades ago needs only 35 per cent of it now. The public must understand that the healthy environment and the preserved cultural heritage, as well as healthy and high quality food are the values we must be ready to pay for.

 

EU Agriculture Ministers and the chairmen of agriculture committees of the national parliaments met in Finland last year to endorse the CAP priorities and the principles of the European model of agriculture – competitiveness, sustainability, multi-functionality, and accountability.

 

The Lithuanian Seimas is actively engaged in the debate about EU matters in the context of agriculture and rural development. Particularly effective are the Committee on European Affairs and the Committee on Foreign Affairs, as well as the sector Committee on Rural Affairs that hold debates on proposals from the European Commission and other EU documents.

 

Ladies and gentlemen,

 

Rural development hand in hand with agricultural production should contribute to the accomplishment of overarching economic goals: reducing disparities between the levels of development of the various regions and attracting more people into employment or entrepreneurial activity, which translates into the improvement of the quality of life.

 

The appearance of organic farming and, shall we say, its opposite, genetically modified organisms, is incidental. Still both are the items of heated discussions that hear diverging opinions. The matters highlighted above will be on the agenda of the two-day conference opened in the Seimas this morning. We will have to decide which of the new farming philosophies are the best for Lithuania and for Europe. Is it the environmentally friendly farming, or is it the farming based on biotechnological innovations that should be developed?

 

Vivid climate changes suggest another dimension of the common policy. That is the production of biofuels and biomass. The EU has set a target to produce 20 per cent of EU energy from renewable energy resources, while biofuels should total to 10 per cent of all transport fuels. The target calls for higher investment in the field and new possibilities for farmers.

 

Another significant challenge to address is more frequent natural phenomena and their impact on agriculture. This is why we must find the most effective means of risk and crisis management on the European level particularly in view of the significant anticipated moves towards the liberalisation of trade in agricultural and food products after 2013.

 

Lithuania takes note of the provision on decoupling (breaking the link between production at the farm level and the amount of support received) stipulated in the CAP reform. Aiming to strengthen our farms and to improve their competitiveness and taking into account the specificity of Lithuanian agriculture, we hope support funds will reach the most promising production farms.

 

The budget allocations to the agriculture sector are among the most urgent matters now as the next year is going to see a EU budget review and an attempt to make decisions about agriculture after 2013. There are signs that the amounts available for payments will be lower, and farmers will have to look for alternative sources of income: rural tourism, energy plants, development of various services, and other breakthrough possibilities. 

 

I frequent Lithuanian villages and farms; I talk to farmers. They speak in one voice about the immediate necessity to simplify the procedures and conditions of support and to reduce bureaucratic red tape. There words must not be neglected.

 

What are the conclusions and the prospects of agriculture? Market conditions send the signals farmers must be able to catch, of course. Multi-functional agricultural units are anticipated to cover more extensive rural areas. There is no doubt that such policy is designed as an encouragement of labour efficiency and competitiveness. Changes will determine the further development of Lithuanian and European agriculture.

 

I wish you, participants of the conference, success. I believe that the conference outcomes will affect the contents of the matters discussed and decisions taken at the Seimas.